Gentherm Incorporated Intrinsic Stock Value – Mixed Fundamentals Could Spell Trouble for Gentherm Incorporated Stock Price
January 5, 2024
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Gentherm Incorporated ($NASDAQ:THRM) is a publicly traded company that specializes in the development and manufacturing of thermal technologies. The company operates in four segments: Automotive, Industrial, Medical, and Custom Products. Their products are used in a variety of applications including automotive, industrial, medical, and consumer markets. The current stock price of Gentherm Incorporated has recently been under pressure from the mixed fundamentals of the company. For example, revenues have seen a slow-down due to the decrease in demand for their products, as well as an increase in competition in the markets they operate in.
Additionally, costs have been on the rise due to higher raw material costs and increased energy costs. These mixed fundamentals have had a negative effect on the stock price of Gentherm Incorporated, as investors are uncertain about the company’s ability to turn its fortunes around. As a result, investors have been more cautious when it comes to investing in the company’s stock. This has resulted in the stock price declining over the past few months. Investors should be wary of investing in Gentherm Incorporated at current levels due to the mixed fundamentals of the company and the uncertainty it may bring to the stock price. Although the company has potential for future growth, there is no guarantee that this will be enough to offset the current negative sentiment in the market. Therefore, investors should keep an eye on Gentherm Incorporated and make investment decisions accordingly.
Stock Price
GENTHERM INCORPORATED opened Tuesday on a mixed note with its stock price edging down by 0.4% from the closing price of $52.4 the previous day. Tuesday’s opening price of $52.1 remained unchanged, signalling a negative sentiment among investors. Recent earnings reports have been disappointing, with analysts pointing to a decline in revenues and net profits. This lack of growth and uncertainty has led to a downward trend in the stock price which, if not reversed soon, could spell trouble for the company in the long run.
GENTHERM INCORPORATED has also seen its stock underperform in comparison to the broader market indices. This could be attributed to the weak fundamentals and some investors also point to the company’s lack of restructuring initiatives as a possible cause. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gentherm Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 1.45k | 18.05 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gentherm Incorporated. More…
| Operations | Investing | Financing |
| 82.03 | -9 | -62.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gentherm Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.23k | 565.54 | 20.13 |
Key Ratios Snapshot
Some of the financial key ratios for Gentherm Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 2.1% | 4.6% |
| FCF Margin | ROE | ROA |
| 2.8% | 6.2% | 3.4% |
Analysis – Gentherm Incorporated Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of GENTHERM INCORPORATED‘s wellbeing. Our proprietary Valuation Line has determined the intrinsic value of GENTHERM INCORPORATED share to be around $86.5. This means that the current price of the stock, traded at $52.1, is undervalued by 39.8%. We believe that GENTHERM INCORPORATED is a good buy at its current price and could be an attractive investment opportunity. More…
Peers
Its competitors are PPAP Automotive Ltd, CIE Automotive SA, and Bethel Automotive Safety Systems Co Ltd.
– PPAP Automotive Ltd ($BSE:532934)
PPAP Automotive Ltd is a Japanese company that manufactures and sells automotive parts and components. The company has a market cap of 2.91B as of 2022 and a Return on Equity of 3.09%. PPAP Automotive Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
– CIE Automotive SA ($LTS:0DZC)
As of 2022, CIE Automotive SA has a market cap of 3.05B and a Return on Equity of 26.38%. The company manufactures and sells automotive components and systems. It operates in two segments: Components and Modules, and Systems. The Components and Modules segment manufactures and sells products such as suspension systems, motorized seats, cockpits, and security systems. The Systems segment provides services such as assembly, painting, and logistics.
– Bethel Automotive Safety Systems Co Ltd ($SHSE:603596)
Bethel Automotive Safety Systems Co Ltd is a company that manufactures automotive safety systems. The company has a market cap of 35.68B as of 2022 and a return on equity of 11.57%. The company’s products include airbags, seatbelts, and other safety systems.
Summary
Gentherm Incorporated (GTH) is a global automotive and industrial thermal management technology provider. From a fundamental investing standpoint, investors should consider the company’s financials, business operations, and competitive position. GTH’s financials should be closely examined to assess profitability, cash flow, and debt levels. The business operations should be evaluated for areas of growth and potential risks.
Finally, the company’s competitive position in the industry should be examined to ascertain whether it is well-positioned to succeed in the current market. Investors should also take into account the economic environment and any macroeconomic factors which could impact GTH’s stock price. By analyzing these factors, investors can make more informed decisions when considering investing in Gentherm Incorporated.
